Invest Northern Ireland
Selective Financial Assistance Scheme
July 2014
__________________________________________________________________________
This document sets out scheme information for Invest Northern Ireland’s Selective Financial
Assistance Scheme and how it will operate under Commission Regulation (EU) 651/2014,
the General Block Exemption Regulation.
1.
Member State
United Kingdom
2.
Region
Northern Ireland
For the purposes of Regional Investment Aid, Northern Ireland will remain a 100% TFEU
Article 107 (3) (c) assisted area for the medium term at which point the position may be
reviewed by HM Government in the context of the UK’s Regional Aid map.
3.
Title of Scheme
Invest NI Selective Financial Assistance Scheme
4.
UK Legal Basis
The relevant legal powers under which support will be provided under this Scheme are
contained in:
5.
-
The Industrial Development (Northern Ireland) Order 1982 1
-
The Industrial Development (Northern Ireland) Act 2002 2
-
The European Communities Act (1972)3.
EC Legal Basis
All aid provided under this Scheme will be within the limits and conditions set out in
Commission Regulation (EU) 651/2014, the General Block Exemption Regulation (GBER) 4.
1
http://www.legislation.gov.uk/nisi/1982/1083/contents
http://www.legislation.gov.uk/nia/2002/1/contents
3
http://www.legislation.gov.uk/ukpga/1972/68/section/2
4 http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN
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6.
Definitions
To the extent that they apply to the aid categories set out in paragraph 12, the definitions in
Article 2 of Commission Regulation (EC) 651/2014 shall apply to the Selective Financial
Assistance scheme.
7.
Objective of the Scheme
The objective of the Selective Financial Assistance scheme is to secure increased private
sector investment and employment growth in Northern Ireland. Beneficiaries must be
able to demonstrate the viability of their projects, there must be need for public funds and
there should be a net economic benefit as a result of supported projects.
The scheme will not assist those companies which cater purely for a Northern Ireland
market if it is already well served.
The scheme is not sector specific and is open to SMEs and large companies. Invest NI will
apply the definition of SME as set out in Annex I of Commission Regulation (EC) 651/2014
and summarised below:
Company category
Medium-sized
Small
Micro
Employees
< 250
< 50
< 10
Turnover or Balance sheet total
≤ € 50 m
≤ € 43 m
≤ € 10 m
≤ € 10 m
≤€2m
≤€2m
Large companies may only receive Regional Investment aid in favour of new economic
activity as provided for in Commission Regulation (EC) 651/2014.
8.
Estimated Annual Scheme Expenditure
£50 million
9.
Maximum Aid Intensity
The Selective Financial Assistance Scheme will respect the relevant maximum aid intensities
as set out in Chapter 3 of Commission Regulation (EC) 651/2014. Where the maximum aid
intensity cannot be set, because eligible costs cannot be identified or in order to provide
simpler instruments for small amounts, the Selective Financial Assistance scheme will
respect the relevant maximum aid amounts set out in Commission Regulation (EC)
651/2014.
10.
Date of Implementation
2 July 2014
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11.
Government body authorised to implement the scheme
The Government Body authorised to implement the scheme is Invest Northern Ireland, a
non-departmental public body under the Department of Enterprise, Trade and Investment
for Northern Ireland.
12.
Scope of Scheme
The Selective Financial Assistance scheme will be open to undertakings proposing to set up,
locate and invest in Northern Ireland. Funding awarded will be discretionary and will align
with Invest NI’s legal powers and will support Northern Ireland’s Programme for
Government 5 and Regional Economic Strategy6.
The Selective Financial Assistance Scheme will provide the following categories of aid as set
out Chapter III of Commission Regulation (EC) 651/2014.
Section
Article
1 - Regional aid
14 - Regional Investment Aid
2 - Aid to SMEs
18 - Aid for consultancy in favour of SMEs
19 - Aid to SMEs for participation in fairs
3 - Aid for access to finance for SMEs
22 - Aid for start-ups
4 - Aid for research and development and 28 - Innovation aid for SMEs
innovation
6 - Aid for disadvantaged workers and for 32 - Aid for the recruitment of disadvantaged workers
workers with disabilities
in the form of wage subsidies
7 - Aid for environmental protection
38 - Investment aid for energy efficiency measures
The Selective Financial Assistance Scheme will respect the exclusions set out in paragraphs 2
to 4 of Chapter I (Common Provisions), Article 1 (Scope).
13.
Duration
The Selective Financial Assistance scheme will operate until 31 December 2020.
14.
Form of Aid
Aid awarded under the Selective Financial Assistance scheme will be predominantly grant,
although loans may also be provided. Only aid for which it is possible to calculate a gross
grant equivalent will be awarded under the scheme.
5
6
http://www.northernireland.gov.uk/pfg-2011-2015-final-report.pdf
http://www.northernireland.gov.uk/ni-economic-strategy-revised-130312.pdf
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15.
Eligible Costs
Aid will be awarded against only the eligible costs set out in Articles 14, 18, 19, 22, 28, 32
and 38 of Commission Regulation (EC) 651/2014.
16.
Incentive Effect
Aid awarded under the Selective Financial Assistance scheme must demonstrate an
incentive effect. To that end, beneficiaries must submit written applications for aid before
work on a project or activity starts. Invest NI will further comply with the provisions of
Article 6 of Commission Regulation (EC) 651/2014 (Incentive Effect) in respect of ad hoc aid
awarded to large enterprises.
17.
Cumulation
The Selective Financial Assistance Scheme will respect the cumulation conditions detailed in
Article 8 of Commission Regulation (EC) 651/2014 and will not cumulate aid such that the
relevant maximum aid intensities or aid amounts are exceeded.
Aid awarded under the Selective Financial Assistance scheme shall not be cumulated with
any de minimis aid in respect of the same eligible costs if such cumulation would result in an
aid intensity exceeding those laid down in Chapter III of Commission Regulation (EC)
651/2014.
18.
Notification Thresholds
In accordance with Article 4 of Commission Regulation (EC) 651/2014 the Selective Financial
Assistance Scheme will respect the following notification thresholds:
19.
i.
for regional investment aid: the ‘adjusted aid amount’ of aid, as calculated in
accordance with the mechanism defined in Article 2, point 20 for an investment with
eligible costs of EUR 100 million;
ii.
for aid for consultancy in favour of SMEs: EUR 2 million per undertaking, per project;
iii.
for aid to SMEs for participation in fairs: EUR 2 million per undertaking, per year;
iv.
for aid for start-ups: the amounts laid down per undertaking in Article 22(3), (4) and
(5);
v.
for innovation aid for SMEs: EUR 5 million per undertaking, per project;
vi.
for aid for the recruitment of disadvantaged workers: EUR 5 million per undertaking,
per year; and
vii.
for investment aid for energy efficiency projects: EUR 10 million as laid down in Article
39(5);
Reporting and Monitoring
An annual report on the expenditure under the Selective Financial Assistance scheme will be
provided to the Commission.
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Records will be kept for 10 year from the date of the last award of aid under the Scheme.
Records will be sufficiently detailed to establish that the conditions of Commission
Regulation (EC) 651/2014 are met.
20.
Name and Address of Granting Authority
Invest Northern Ireland
Bedford Square
Bedford Street
Belfast
BT2 7ES
+44 28 9023 9090
www.investni.com
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